NWE said:
EDIT: This is my first experience in purchasing an investment property. I have a lot to learn.
I want to purchase in the next 12 months and rent out until my kids go to school there. I'd be financing.
If I'm understanding this thread correctly, it would be nearly impossible to finance a home and make enough from rent to cover my mortgage at current prices?
What are some other good ideas to get in the market year ahead of a family member utilizing the property? I see it as dual purpose. If my kids don't go to school there, I would either keep renting it out if it was a nice passive stream, or sell it.
Are foreclosures still a good way to go if I had time and money to fix it up a bit?
Hold Up AGs. This exact situation is what I went through in 2003 and I will bring it back to 2024 to make it relevant. This has become my PASSION!!!!
I got involved in INVESTMENT real estate in 2003, SIMPLY to save money from paying dorm fees. I bought a DUPLEX (3 bedrooms 2 bath each side). My son had two roommates paying $325 each and 3 girls on the other side paying $900 total. I was NERVOUS as hell so I put down $46k on a $146k purchase. My total monthly cost was $1000 and I was bring in $1525 with my son living free. My son stayed for a Master's Degree and his sister joined him on the other side with two of her roommates at $325 each. So I was bringing in $1300 monthly and my expenses were $1000. So I'm making $300 positive and my kids living for FREE.
That was then, here is now. As a result of that first INVESTMENT property, I now own 20 units and loving life. Still own that first duplex in Bryan TX. Hold up Joe (that's Me), that was then, can't do that today!!! I say Bull Sheet!!!!!
In May of 2024, Less than a year ago, I bought a duplex in Bryan, with cash only because I don't need loans anymore. I would recommend using leverage for first time investors. No renovation needed, rented as is!!!!
Sale price 280k. Rents total $2740 monthly, close to VET school and main campus. JUST under the 1% rule. Yes, not as good as it was in 2003 but COME ON guys, take any 20 year period and it will ALWAY BE BETTER looking back!!!
Now here is the SECRET SAUCE!!!!!
1. Don't buy a SFH! Listen Up!!!! Don't buy a SFH (Single Family Home).
2. Do buy a DUPLEX. Do buy a DUPLEX if your a first time REAL ESTATE INVESTOR. If you are more EXPERIENCED, don't be afraid to buy a TRI-PlEX or Four Plex.............BUT DON'T BUY A SFH!!! JUST DON'T.
3. If you are looking in the BCS area, favor Bryan and close to the campus and when you look back 20 years you will smile and say man o man my real estate INVESTING has come a LONG WAY!
For LONG TERM investors, it is all about CASH FLOW!!!!
CASH FLOW is....................KING!!!!!!!
Lastly, by doing this and letting your kids help manage your property, finding their friends as roommates and passing some responsibilities to them, they are learning very important life skills.
My son now owns 2 duplexes and my daughter own one duplex and one SFH rental that her husband owned before marriage.
Full disclosure, I am neither a real estate agent or lender. I have no conflict of interest I just tell it as it is.
Good Luck Ags and as always...........Cheers!
Gig'Em
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